HSBC Holdings plc (2011)
Notes on the Financial Statements [extract]
2 Summary of significant accounting policies [extract]
(b) Non-interest income [extract]
Fee income is earned from a diverse range of services provided by HSBC to its customers. Fee income is accounted for as follows:
– income earned on the execution of a significant act is recognised as revenue when the act is completed (for example, fees arising from negotiating, or participating in the negotiation of, a transaction for a third-party, such as the arrangement for the acquisition of shares or other securities);
– income earned from the provision of services is recognised as revenue as the services are provided (for example, asset management, portfolio and other management advisory and service fees); and
– income which forms an integral part of the effective interest rate of a financial instrument is recognised as an adjustment to the effective interest rate (for example, certain loan commitment fees) and recorded in ‘Interest income’.
By contrast, Barclays Bank only provides summarised information about its accounting policies and refers directly to IAS 18: